The purchase or lease of office equipment is a decision business owners and managers routinely face. Should you opt to lease a multi-function printer (MFP), Milner will work on your behalf with a number of third-party leasing company that serve businesses of all sizes.

Here are some fundamental considerations for lease versus purchase:

CASH FLOW: The biggest and most obvious benefit of leasing office equipment is it frees up operating capital. Cash flow becomes restricted when equipment is purchased. Many pieces of equipment cost thousands of dollars, meaning you have that much less to run your daily operation. With a lease there may be a small deposit up front and then an affordable monthly payment. The rest of your money is free to spend as needed. Although you could pay more for the item in the long run, you still have money to operate.

EASIER TAXES: Leasing equipment makes filing taxes simpler than it would be with a long list of purchased equipment. When a company purchases office equipment it must fill out depreciation schedules and deal with Alternative Minimum Tax, which can be time consuming and confusing. When equipment is leased, the total amount of payments made during the previous year on the equipment is simply deducted as a business expense.

EASIER APPROVAL: Changes to lending guidelines over the past few years have made it difficult for company’s without good to excellent credit to secure financing. New businesses with little to no credit history will be require the business owner to sign a personal guaranty.

CHANGING TECHNOLOGY: Office equipment is no exception to the continued evolution of technology. Making a large capital purchase doesn’t provide the flexibility of keeping up with the “latest and greatest” features and functions.

USED VS. NEW EQUIPMENT: Another option in the lease versus purchase decision is new versus used equipment. Used equipment may be leased or purchased and is covered the same as new equipment under a Milner general maintenance agreement.